Mosdos Chofetz Chaim, Inc. v. RBS Citizens, N.A., (SD NY, March 30, 2014) is a 61-page opinion growing out of a suit by an Orthodox Jewish religious group that encountered hurdles in its attempt to build an adult religious studies Kollel building along with family housing for Kollel students on a parcel of land in Ramapo, New York. The events are part of the tension in recent years over the movement of increasing numbers of Orthodox and Hasidic Jewish families to Ramapo and areas around it in Rockland County. (See prior posting.)
Originally the Kollel project was financed by RBS Citizens, but it sold the note and mortgage to Avon which eventually foreclosed on the mortgage. Among the 17 causes of action against three groups of defendants is a claim that the foreclosure was commenced because a principal of Avon, Abraham Grunwald, disapproved of the religious lifestyle and education of the Mosdos Kollel students and wanted to close down the Kollel and replace it with an institution consistent with Grunwald’s own religious values. The complaint also alleges that an agent of Avon and Grunwald engaged in a campaign to injure Mosdos by calling its students to tell them that the school would be shut down, and urging donors not to donate because the school is not viable.
The court dismissed abuse of process and slander claims against the Avon defendants. But it did allow Mosdos to move forward with its claim that the mortgage agreement that was foreclosed upon is invalid because under Sec. 12(1) of New York's Religious Corporation Law the mortgage requires prior court approval. (See prior related posting.)
